Since the novel allure of Apple (NASDAQ: AAPL) has faded post-iPhone glory days, some investors have lost the thrill for this once-renowned stock. Despite the subdued excitement, the underlying potential remains robust. Here are three persuasive reasons why investors should consider buying Apple stock in the present climate.

Innovative AI Integration with iPhone

As Apple revealed its latest iPhone, the iPhone 16, on Sept. 9, expectations ran high. The upgraded camera, improved action button, and integration of the A18 processor chip for handling AI tasks onsite set a new benchmark for smartphones.

While competitors like Google Gemini and Microsoft’s Copilot vie for market attention, the underestimation of Apple’s brand strength and consumer loyalty to the ecosystem remains palpable. With 93% of current Apple device owners inclined to stick with the brand, the forthcoming Apple Intelligence software promises to revolutionize the AI landscape.

Despite the gradual rollout, industry projections of a rising trend in AI-capable smartphones, from 234.2 million in 2021 to 912 million by 2028, position Apple favorably for long-term growth potential. The delayed launch of Apple Intelligence is unlikely to impede Apple’s share in this burgeoning market.

Shifting Focus to Lucrative High-Margin Services

While the iPhone has historically been a revenue powerhouse for Apple, its role has evolved from a standalone profit center to a key driver of demand for digital services. These services, including apps, streaming content, and music, have emerged as Apple’s second-largest revenue stream after the iPhone, constituting nearly a quarter of the company’s top line.

Notably, services, despite comprising a smaller slice of Apple’s total business compared to device sales, contribute substantially to the company’s gross income. With service-related gross profits accounting for close to 40% of gross income, Apple’s diversified revenue sources showcase resilience and a pathway to sustained profitability.